Social division of labor

Social division of labor, one of the two aspects of the division of labor, is the social structural foundation of the specialized commodity production divided between industries, firms, and occupations of workers, or the technical division of tasks. Prior to centralized manufacturing, individuals specialized in the production of one product, trading their final product for final products made by other individuals. This can refer to specialized trades within a community, such as master sewers, blacksmiths, farmers, etc., or also the specializations of whole communities in contact with each other, such as one community making clothes, one making tools, and another producing food, which they exchange. Social division of labor greatly increases productivity, because individuals can produce the product in which they have a comparative advantage, and trade it to the individuals who cannot efficiently produce it for the products they need. The social division of labor creates exchange market and prices, by comparing the cost and time of making each product.